Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
No he doesn't.
No he doesn't. He's never held 20% of the float.
No he doesn't. He owns 13%. Common shares have nothing to do with preferreds. He'd have to sell his shares for $0.05 in order for them to be $0.05 as a result of his selling.
I don't pay much attention to Ackman. I think he's a hack investor.
I've placed my bet that it will go to at least $1 within weeks of tax reform. Only one of us will win that bet. Goodluck.
During the bailout, the government excercised warrants more often than not. I'm betting they'll continue the tradition. Trump couldn't care less about investors. He's made his disdain for wallstreet public on several occasions.
Not my math. Read the SPSPA and 10-k and you can figure it out too.
No, that's correct. It's a different subject matter than what I was discussing though.
The government created the mortgage market. They've controlled it since the 30's.
Assets exceed liabilities by $6b. 100% of liabilities are in the form of bonds. $6b that is left over is not enough to satisfy the par value of preferreds. That means commons would be wiped out.
That's one possibility. We'll find out possibly next year.
If she feels so strongly, she should introduce legislation. She hasn't. I'm not a fan of maxine waters. If it isn't an NAACP issue, she has little interest in helping.
Maxine isn't the FHFA or Treasury.
It isn't paid in full according to the government.
Apparently Rick Mulvaney, OMB Director, didn't get the memo.
https://www.congress.gov/bill/114th-congress/house-bill/4913/text
"(c) Exercise Of Warrants For Common Stock.—Notwithstanding subsection (a)(2)(C) of this section, upon the enactment of this Act, the Department of the Treasury shall exercise the warrants for the purchase of common stock of the enterprises provided to the Department under the Senior Preferred Stock Purchase Agreements."
I believe whatever way the government chooses, their own benefit will be their concern. The shareholders, as they've said over and over, is the last thing they're thinking about.
FnF will be released in order to serve the general public, not for the interest of the shareholders. This, I assure you. Making ordinary people rich is the last thing the government cares about.
Warrants don't have to be cancelled in order to recap them. Look at the Mulvaney Bill. Calls for recap plus exercising the warrants. I can't think of any professional that believes warrants won't be excercised.
I don't believe they'll replace them. I believe they'll recap them. Different issue.
In order to capitalize the companies. Warrants won't be cancelled. They're a contract owed to the government.
They can't. Liquidation preference. Courts already ruled on it.
They replace the old shares with new shares. That's how they'll capitalize the companies. Nobody needs the old shareholders.
Receivership. When the DTA impairments take place, the company will be taken into receivership. It will be mandatory for each entity that doesn't produce positive NI.
FnF have no say whatsoever in the accounting policies that are chosen. FHFA has sole legal discretion. If you think their goal isn't to put the entities into receivership, even after several court documents have stated that's been the goal from day one, then prepare to lose your entire investment. This has never been about doing what's right for the shareholders. Government has full control. You have none.
Tim Howard said no such thing. There is no other accounting rules for the handling of DTA impairments.
Won't be this year.
When you're one of the three richest men in the world, there's no such thing as "failed".
commons will be wiped out.
So he thinks recap would be $83b for both companies? It'll be a lot more than that.
The company doesn't produce $10b of net income in one quarter. Try again.
Because the NWS isn't being stopped and DTA impairment are inevitable, putting the company at risk of being put into receivership. Mnuchin lied.
It doesn't. It takes about a year.
Which the source of that finding came from me and my Twitter post.
That's not what I said. Clearly you don't understand the gravity of the situation. Really hope you're in commons. This will be an extremely valuable lesson for you to learn. What's coming in August will most likely wipe you out.
There'll come a point where the cost of a multiple year lawsuit will outweigh the reward. Fairholme's lawyers are not cheap. I doubt it is dragged on further than February of next year.
Yes, I did mean receivership. Wouldn't require a liquidation beyond wiping the commons and doing a new share offering.
I was 100% commons until Mnuchin stated he was holding off reform until after taxes. The same excitement he had showed previously no longer existed. It's clear to me the goal is to force another draw through deferred tax impairments and put the GSE's into conservatorship where they could wipe the common holders and start all over. Similar to what happens in chapter 11 cases everyday (a subject I'm considered an expert on).